The revenue is forecast by the buyer (i) at the agreement stage, (ii) at the Rev-Share trigger stage, and thereafter (iii) on a quarterly basis over the course of the Rev-Share. Once revenue is booked, the buyer reports the booked revenue and Enten verifies the numbers provided, as against earlier forecasts. Where there are discrepancies, Enten audits the buyer to verify that their figures are correct.
Payments can involve (i) normal cash compensation, (ii) Rev-Shares, or (iii) both. By default, payments are held in escrow by Enten's escrow agent and then released in accordance with agreed milestones and/or Rev-Share conditions. Rev-Share payments are provided to Enten's escrow agent by the buyer one quarter in advance of the relevant forecast and then released to the seller on a rolling, quarterly basis once verification checks have been completed.
Enten's model is suitable for all types of project. Please get in touch to discuss any details that are particular to your situation by booking a consultation call or by sending an email to contact@enten.tech.
Enten charges (i) a fee to arrange the Rev-Share agreement, (ii) a fee to manage the Rev-Share, and (iii) a commission from the Rev-Share payments. Book a consultation call to find out more.
Please book a consultation call to find out more.
That depends on the precise nature of the deal that is put in place between the buyer and seller. But, in the event that no revenue is produced at all, it is likely that the Rev-Share will never be activated and, in that case, the buyer does not pay out anything nor does the seller receive anything. This is part of the risk/reward structure of the Rev-Share relationship. Enten strives to only recommend deals that will produce revenue but where that does not happen, revenue sharing will not occur.